Disney leaps in late trade with quarterly profit topping estimates as the lion king roars at theaters and theme parks stay strong. Kathleen lets take a look at how asian markets are opening. The asx 200, a little bit higher beenthe 6726, which had the biggest advance in three weeks on the market close yesterday. Now to nikkei futures, a fractional move higher. There is uncertainty about the trade war deal getting done. That will weigh on japanese stocks. Stocks had risen for a third day yesterday, but there could be a fourth, the kind of company that could benefit from this u. S. China trade deal. Stocks are looking about a half point higher, a little bit of hope there, and of course, the s p 500 why is it down . Because it was up so much today. The s p 500 hit that alltime high. From here, we will have to wait to see some fresh impetus for stocks to continue to rally. Lets get to first word news now with jessica summers. Jessica thanks, kathleen. The french president has attacked nato, saying it is effectively dead leaving collective defense commitments in doubt. He wants europe to create its own military group rather than rely on the increasingly withdrawn u. S. Former National Security adviser stephen rice says the u. S. Has been alienating allies in recent years. We have squandered the many of those allies by denigrating them, by making everything transactional, by failing to tell the truth on multiple moments every day. Jessica china has hit the pause button on its recent gold buying spree. Purchases state level, unchanged from the month earlier. Mainland stockpiles were boosted by more than 100 tons. Beijing has been buying gold to offset the fallout from the rumbling trade war. Ritual banks going beyond its own shores. It says it wants to become a regional hub for Technology Firms advanced data expertise. The Monetary Authority says doing so would improve making services at home at another parts of Southeast Asia. The managing director says Southeast Asia presents a huge opportunity for virtual banks. We see some of these players becoming regionally important, ahead, singapore wants to be a base for these players as they grow in the region. Jessica former new york city mayor Michael Bloomberg is again weighing a White House Run next year with an advisor saying he is concerned the current crop of democrats will not be able to beat President Trump. Bloomberg had considered a run earlier this year but decided to instead support other democratic efforts. He is the founder and majority owner of bloomberg lp, bloombergs Parent Company p or global news on air and at tictoc on twitter powered by more than 27 hundred journalists and analysts in more than 120 countries. The u. S. And china have agreed to roll back tariffs on each others goods in phases as they work on another deal. Larry kudlow has confirmed bloomberg there will be concessions if the so called one accord happens, but there are also reports of resistance within the white house. Senior trade editor Sarah Mcgregor joins us from fell a senior trade editor Sarah Mcgregor joins us from hell a l. A. Ins us from the only people opposed to it apparently are not speaking publicly. What does this tell us . Always divisions, always the hawks who want to go harder on china. They want to try to extract as much as possible and there are people like larry kudlow who are much more market focus, and i think seeing the stock market get a bump from a good news trade day is always a relief for them. That said, it does seem like the u. S. Is at least publicly saying it will consider rolling back some of these tariffs if they get a trade deal, and that is a big if right now. What will they ask for from china to get that trade deal, and will china actually agree to those reforms . Sophie rolling back tariffs has been a key demand of beijing, but what does this recent Development Show you about what the white house wants . Sarah absolutely. Weve seen for the white house has delayed or postponed tariffs but never removed tariffs they have put in place since the trade war began, so this would be a significant step, easing of tensions if it does take place, and it might show that donald trump really is serious about trying to get this deal ahead of the 2020 elections. No matter what happens, the u. S. Is going to keep the threat of putting tariffs back in place if china does not live up to the made. Es it has they will definitely not remove the threat of tariffs, and i think the uncertainty will continue to weigh on the economy and make people nervous even if a deal is reached. Been helping have run this process for a long time. This whole trade war episode. Are they sense really getting close to getting phase one of a deal that is going to make the path open for the next phase if china does what it is supposed to do and areu. S. Reduces tariffs, or they perceived as markets are weak . We have been burned before thinking there was a deal in may and then the talks collapse, so there is definitely reason to be pessimistic perhaps, at least skeptical, but trump does have 2020 elections coming up. One of his key promises in 2016 was to forge a new relationship with china, kind of show them who is boss, and stand up for american businesses. He will be able to sell this deal if he is able to reach a phase one deal any way he wants on the campaign trail. He is motivated probably more than ever before. I think it really will be down to the fact how they will be able to reach a big enough deal that trump will be able to sell it to the American People as this huge win for america. Sophie joining us for more street globalte macro strategist marvin low. We saw that selloff. Lets go to the terminal to show viewers this chart that demonstrates 10year yields are jumping to a threeyear high. The yield curve steepening amid some optimism for growth since the apparent release on the 2020 front shifted the outlook for you. I think the prior guest was talking about we have been here before, we have been burned before. We actually need to see a plan to get a sense of what 2020 will ultimately look like. The only aspect of trade that we have seen this year is around escalation. Still aremistic, we somewhat cautious in the actual detail, and lets not forget we do not have anything on paper with regard to even where we will read up for a phase one deal. I would not call it a major breakout. Certainly the fear trade, if you will, the doomsday trade that was in the market around august has reversed. The data has shown that it was incorrect to be as negative as we were during that time. Having said that, to percent is very far from where we started the year. Has cut ande fed pause and one speaker after another seems to be signaling they intend where to stay unless things materially weaken. Is this one of the reasons why we have seen the bottom in yields and people starting to now,here do yields be long how do i price them . Interesting, right . Really for the First Time Since the cutting process began over the summer, the market is listening to the fed, and fed credibility is coming back into the front line, so the market moves by the fed credibility and stabilizing things, but we still are pricing a cut much later than we had a few weeks ago, and while the data has stabilized, it certainly has not shown any signs of rapid improvement, so we are going to take a step back. We will certainly evaluate the data as it comes, but by no means are we saying we will see. , 2 plus growth kathleen that is kind of a bold call because rate cuts are fully priced out of the market this year and next. What is going to weaken the economy . What is going to move the fed off its point of saying growth is good enough, inflation is close enough to growth targets, we will cut again . Quick number one, inflation is not there. That remains a concern. Part of this reflection trade has seen real and breakeven yields move back up, but they still remained below where they were and of summer when they collapsed and we are 10 and a half years into the cycle where job growth is not as fast and while the consumer remains engaged and certainly an important part of the u. S. Economy, a lot of the other manufacturing data still creates potentially a trough, but still concerned going out there. I dont think ive seen anything that makes me think we are reaccelerating growth. Certainly a comprehensive trade deal that gets businesses back into investment mode could change that view, but like i said, the devil is in the details. Momentum we are seeing with yields, are these yields a danger to equities . Not yet. Certainly, they will be at a certain point. There are good reasons for yields to go up. Right now, i think yields are in a fitting from the thought that the economies are stabilizing, the Global Economy is stabilizing. You look at cyclicals versus defensives when you look at how European Equity markets have been performing. Theres an expectation we might have seen a bottom on the global side of things, but we do need actual growth to support this kind of pivot. Kathleen do you see any places moreia where you find interesting for bonds, less interesting . They are at a different point in a lot of their cycles than many other countries. There key rates are higher. Central banks have more room to cut if they need to. Offirst and foremost, kind the pivot on the tray discussion position. In a better korea and their relative markets if the positive tidings continue. I do think that even if we have yield, wecrease in still remain in a relatively low yield world. Theyield are something market will ultimately be attracted back to once we get some stabilization in terms of where yields will settle out. Kathleen thank you so much. Still ahead on the show, Household Spending data out of japan is out at the bottom of the hour. Forecasts show consumers rushed to buy ahead of last months sales tax hike. Inhie up next, disney jumps trading thanks to movie hits and strong sales at theme parks. This is bloomberg. Kathleen you are watching daybreak asia. After earnings beat expectations, thanks in part to performance from the lion king. Su keenan has more. Was not just movies but also the theme parks where they sold a lot of merchandise tied to the action films. Lets go right to the after hours. At one point, shares were up almost 6 after hours and rose to 141. Look at the big picture year to date chart and you will notice shares also spike back in april, and that had to do and they first announced they were going to do the numbers they were expecting for their streaming service. Overall revenue soared due in part to the acquisition of 20th century fox which closed back in march. As we mentioned movies like the action film lion king, and helped boosty 4 revenue. Fourth quarter earnings beat estimates. Again, the agreement putting these new streaming services on amazon which was also a big breakthrough because they were an initial holdout. Tata. E hakuna ma tell us more. Before theming days launch of disneys seven dollars a month streaming service. Pushed bob iger has streaming service the relative urgency saying he needed to keep up with netflix and other rivals. We are still relatively small in terms of the scope of things, in terms of number of subscribers, but the best way for me to characterize it would be to say that we are enthusiastic about what we saw the consumer reaction to be. We certainly feel good about the product thats going to the marketplace next week, and we will know a lot more in just a few days. We will know more in a few days indeed. Importantly, they reached agreements to get into distribution with amazon, samsung, and lg devices. That will introduce them to tens of millions of extra online viewers. They also had prior agreements and 8ironnd apple, with verizon will also ensure that when they launch next tuesday, they will be off to a very fast start. Again, in all, a very strong report from disney, exceeding estimates, particularly on the movie studio side and a lot of excitement about what they might be able to do in the streaming space. Sophie i could see some excitement there, disney and chill perhaps. Loom energy reported record revenue in the Third Quarter and posted another net loss in a string of reverses that goes back to at least 2015. Kathleen General Motors has brought the curtain down on its time in ohio, selling its shuttered plant to an electric truck start up the deal ends five decades of gm building vehicles in the state. Sealed when unions failed to convince General Motors to keep the firm open as part of a new labor contract agreed last month. Sophie peck has tried to turn things around, including shaking up the leadership team, but business has declined to such an extent that they decided to spin off its recent sales driver, old navy. Our exclusive interview with john walters is just ahead. This is bloomberg. Kathleen this is daybreak asia. Im Kathleen Hays in new york. Sophie im Sophie Kamaruddin in hong kong. The Federal Reserve sparking what could be a busy end of the year from Goldman Sachs which says it is seeing more deal chatter. Goldmans president and coo spoke exclusively to bloomberg about Risk Appetite and the banks current ventures. Analystoldman sachs impact fund is effectively democratizing our giving and giving analysts the opportunity to choose notforprofit organizations that they think need the money. Finalistsst had six present to us and we are getting ready to choose a winner and we are really excited about. Some people spend two years on wall street and move into the private equity world. Clearly, youre investing in your young people. What is your pitch to them to stay and build a career at Goldman Sachs . We have a very diverse workforce, very global business. We offer our analysts an opportunity to wander all over the firm and do very different things, and we think there is an enormous opportunity for them to stay longer and benefit their skill set. We have less than eight weeks left of this year. Its almost 2020. Its almost a new decade. Can you tell us a littler about a little bit about what Goldman Sachs is going to look like in 36 months . Uniquely going to be Goldman Sachs for as long as im running the firm and i hope longer than that. We are going to keep investing in our businesses and make our businesses stronger. There are market franchise opportunities and we are going to attack those and make our business stronger. Do those mean m a . We have made some acquisitions. We bought a Company CalledUnited CapitalGroup Earlier this year and that is an example. We will continue to look for acquisition opportunities if they help our cause, but organically, we see tremendous Growth Opportunities within the firm. Obviously, launching our markets platform is an example of a new business. Our apple card venture with apple is an example of a new business. It is a combination of investing in exits the existing businesses and launching new platforms. Another thing everyone is thinking about is what bonus season looks like. What can you tell people . Weve been hearing pleaded pretty bleak numbers across the board. It is not to simmer. We have weeks to go. We are hard at work. Business feels good. We are focused on delivering to yearend. Your expectations for what yearend and internet share looks like in terms of activity . Do you expect there will be a revival here . We actually see an uptick in Risk Appetite. I think what happened with the Federal Reserve and Central Banks around the world in terms of injecting liquidity into the system and being relatively dovish has helped particularly the u. S. Consumer. I would say the market is pretty wide open. Activity levels are high. We are seeing deals being announced or contemplated, so i would say we are pretty constructive on the environment right now. Led Fosters Group at the golden age of buyouts and we are everg one of the biggest buyouts being considered. Can the market absorb a deal like that . Is that kind of deal possible in this era . I would not comment on a specific transaction, but theres tremendous liquidity in Public Markets and private markets. We have seen an explosion of capital migrating into private markets. Obviously private equity funds, and privateructures forms, so there is enormous liquidity in the market that could support big transactions. Sophie Goldman Sachs president and coo speaking exclusively to bloomberg. U. S. Futures holding the overnight drop after falling during the month. Making it one of the worst days since President Trump was elected. It looks like a buying opportunity for some investors who have a grim view of the u. S. Economy. Bearish across the curve with the 10year yield adding about ace eight basis points. Third Quarter Sales in hong kong , south korea, and the americas were weak and a japan, there was a rush ahead of the sales tax hike, which was below company expectations. Of data fromlew japan. Wage and Household Spending readings these are very, very important to the bank of japan. Household spending, of course, what drives the economy. A big rush into reset into retail sales expected ahead of the sales tax hike. We will see if they live up to expectations. This is bloomberg. Sophie we are seeing some data come through from japan, keeping an eye on what is happening with households for japan, seeing spending accelerated ahead of the sales tax hike. We had retail sales growth accelerating year on year and the data coming through. Household spending for september rising 9. 5 on a yearly basis, beating the consensus for a 7